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Jobless Caims Rise To Highest Level Since 1992

Thursday, 20 November 2008 12:53:22 GMT

Written by John Rivera, Currency Analyst

Initial jobless claims in the U.S. unexpectedly rose last week to 542,000 – the highest level since 1992. The total benefit rolls rose above 4 million for the first time since 1982.  The country has already seen job losses of 1.2 million and more is expected as several companies like Citigroup have announced significant cuts. Additionally, the troubles of the big three auto makers will be pressure on the labor markets as suppliers look to cut costs, as the industry is expected to be restructured and production reduced. The dollar would initially rally against the Euro on risk aversion flows but retraced shortly thereafter.

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